Seattle Office Market Trends

By Brian Hayden, Flinn Ferguson

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The following is an introduction to the entire Flinn Ferguson article, complete with many details and property photos, available here as a pdf.

Second Quarter 2017

General Overview

Seattle’s office market is flat heading into the second half of 2017 with vacancy rates remaining at 7.3% in Q2 2017 in the Downtown Seattle Submarket. Net Absorption for the Downtown Seattle Puget Sound Office Market in Q2 was negative (56,000) square feet.  There continues to be strong demand for Seattle commercial real estate investment product. Rental rates across all submarkets and building classes are on the rise while concessions continue to decrease.  Market fundamentals are expected to be in favor of landlords for all of 2017.

Economy

The Seattle/Bellevue/Everett area has continued to see significant Job growth with preliminary seasonally adjusted statewide unemployment decreasing from 4.3% in Q4 to3.3% in May of 2017 according to The Washington State Employment Security Department.  The Bureau of Labor Statistics is reporting a slightly higher rate of 3.6% for the Seattle/Bellevue/Tacoma area.

Proposed Development

This quarter many previously proposed developments have started construction, with only a handful of new developments being announced or completed: Please see the pdf of the complete article for details.

Office Construction

While many projects that were under construction last year have delivered, Seattle continues to be at an all-time high construction boom with the following developments all currently under construction: Please see the pdf of the complete article for details.

Top Q2 2017 Office Sales

In general, building sale activity in Q2 saw a significant increase in activity from the first quarter of 2017: Please see the pdf of the complete article for details.

Notable Q2 2017 Leases

Office leasing in the first quarter of 2017 saw an uptick from the fourth quarter fueled by rapid Technology expansion: Please see the pdf of the complete article for details.

Market Data

To summarize, below is a table providing information for the major submarkets of Seattle:

market-data-table-small.jpg
 Submarket Snapshot
 Brian Hayden

Brian Hayden, Principal
brian@flinnferguson.com, 206.626.0891 direct
Since 2003 Brian has exclusively represented commercial tenants with space acquisition and lease negotiations. He provides his customers with comprehensive, diligent and professional representation with in-depth market knowledge and customized negotiation strategies. Brian has extensive experience with facility relocations, lease renewals, space expansions, subleases and lease portfolio representation services.

Brian’s intense work ethic and dedication to his clients earned him Flinn Ferguson’s Top Producer Award in 2011 and 2012 and he became a principal at Flinn Ferguson in 2013.